Federal cannabis banking data shows decline in accounts (Newsletter: February 28, 2020)

USDA suspends hemp rule enforcement; FDA: ‘fool’s game’ to ban CBD; VT House OKs legal marijuana sales; Minority cannabis org defends Sanders

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/ TOP THINGS TO KNOW

New Financial Crimes Enforcement Network data shows that the number of cannabis-related accounts that banks are reporting to federal officials decreased at the end of 2019. But the decline seems related to removal of requirements to report legal hemp business clients, and doesn’t necessarily mean that fewer marijuana firms are accessing financial services.

The U.S. Department of Agriculture announced it will temporarily suspend enforcement of two restrictive hemp rules concerning THC testing and disposal of too-potent crops in response to concerns raised by farmers.

Food and Drug Administration Commissioner Stephen Hahn admitted that it would be “a fool’s game” to try to keep popular CBD products off the market.

The Vermont House of Representatives formally passed a bill to legalize marijuana sales, one day after it received initial approval. Prior to final passage lawmakers added a ban advertising by cannabis businesses, but rejected expanded disclosure requirements for investors as well as a proposal to give police discretion to test the saliva of drivers suspected to be under the influence. Gov. Phil Scott (R) says he would need strong impaired driving provisions in order to sign it.

Sen. Bernie Sanders (I-VT), a presidential candidate, took heat for comments at this week’s Democratic debate about people of color working in the legal marijuana industry—with some saying he implied all they’re good at is selling drugs. But now the Minority Cannabis Business Association is backing him up and cheering on the remarks.

/ FEDERAL

Federal agents are investigating whether a Drug Enforcement Administration agent murdered in Mexico in 1985 may have been betrayed by a Central Intelligence Agency operative and a DEA official.

Sen. Elizabeth Warren (D-MA), a presidential candidate, tweeted, “Legalizing marijuana needs to be about more than just allowing its use. We have to undo a century of racist policy, help rebuild the communities that have suffered the most harm, and ensure everyone can enjoy the opportunities this new market can provide.”

Sen. Tom Cotton (R-AR) tweeted, “In Philadelphia, a nonprofit has decided to ignore drug laws and open a so-called ‘safe injection site’ that would normalize illegal drug use and spread addiction. There’s nothing safe about injecting heroin and Philadelphia is doing no favors to addicts by enabling this drug use. Instead of legalizing heroin & fentanyl, we should lock up traffickers and start protecting law-abiding citizens.”

Sen. Rand Paul (R-KY) discussed hemp during a meeting with Kentucky’s agriculture commissioner.

Maryland Democratic congressional candidate Mia Mason tweeted, “Wanna know how to pay for Kirwan, Infrastructure, and more? Allow for more legalization in Maryland for businesses and farmers. Alcohol bans were reaped and taxed, Cars and fuels became taxed in crisis, and Tobacco became taxed as well to help pay for healthcare.”

/ STATES

Utah lawmakers sent Gov. Gary Herbert (R) a bill to revise medical cannabis regulations.

The Idaho Senate approved a hemp bill.

The Arizona Senate unanimously approved legislation to allow surprise inspections of medical cannabis businesses.

The Missouri House of Representatives amended a bill focused on protecting medical cannabis patients’ privacy to add restrictions on the process of obtaining a recommendation.

A Wisconsin judge declined to dismiss charges against two men who say they accept “donations” in exchange for marijuana at their Rastafarian church.

Maryland regulators are being sued over their medical cannabis business licensing process.

Alabama’s Senate could vote on a medical cannabis bill on Thursday.

A Louisiana representative filed a bill to allow flower in the state’s medical cannabis program.

An analysis concluded that two-thirds of Massachusetts municipalities that have signed host community agreements with marijuana businesses require payments that exceed state limits.

Guam regulators will hold a series of public hearings on marijuana rules.

Washington State regulators will hold a public forum about draft conceptual rules on voluntary cannabis licensee consultation and education program on March 11.

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/ LOCAL

A Philadelphia, Pennsylvania safe consumption site for illegal drugs had plans to open next week following a federal court ruling, but is now delaying due to a change of heart by a landlord who no longer wishes to rent space to the facility.

San Francisco, California’s mayor announced she will file legislation to allow safe consumption sites for illegal drugs.

An Aurora, Colorado City Council member is proposing to increase marijuana taxes to help fund domestic violence, mental health and gang prevention efforts.

/ INTERNATIONAL

The head of the United Nations International Narcotics Control Board suggested that it may be time to revise global drug treaties as his body released a report criticizing the spread of marijuana legalization.

Malawi’s Parliament passed a bill to legalize medical cannabis.

Mexican regulators granted the country’s first permits to import marijuana seeds.

Bermuda’s attorney general spoke about government plans to pass marijuana legalization legislation.

/ SCIENCE & HEALTH

A study concluded that “cannabinoids exhibit antibacterial activity against methicillin-resistant Staphylococcus aureus (MRSA), inhibit its ability to form biofilms, and eradicate preformed biofilms and stationary phase cells persistent to antibiotics.”

A study found “little evidence to suggest that teen marijuana use is sensitive to changes in the state cigarette tax” and that there is “preliminary evidence that the recent adoption of state e-cigarette taxes is associated with a reduction in youth marijuana use.”

The first two participants in a Phase 3 clinical study on MDMA-assisted psychotherapy for posttraumatic stress disorder completed treatment.

/ ADVOCACY, OPINION & ANALYSIS

Vicente Sederberg LLP, Agricultural Hemp Solutions, American Herbal Products Association, U.S. Hemp Roundtable and Vote Hemp released a model hemp plan for states.

/ BUSINESS

Tilray Inc. is being sued by 420 Investments Ltd. for alleged breach of contract following a “change of heart” in a deal for the former company to acquire the latter one.

Acreage Holdings reportedly eliminated 40 staff positions.

WAMM Phytotherapies will begin distributing free and low-cost medical cannabis to low-income patients on March 1 under a new California law.

Sephora released a list of standards it will use for CBD products it carries.

Cresco Labs converted its New York dispensaries to the Sunnyside* brand and launched a medical cannabis delivery service in one area.

iAnthus Capital Holdings, Inc.  filed a statement of claim to defend against alleged efforts to interfere in its business by Oasis Investments II Master Fund Ltd.

/ CULTURE

Here’s a look at efforts to change National Basketball Association marijuana policies.

Actress Gwyneth Paltrow discussed psychedelics in an interview with Jimmy Kimmel.

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